Study On The Relationship Between The Behavior Of State-owned Holding Company Board Of Directors And Company Performance

The board of directors under the modern enterprise system is playing a more and more important role in the corporate governance. The board of directors is one of the core mechanisms among the internal corporate governance, so people pay more attention to the functions and role of it, and hope to improve continuously the effectiveness of the board of directors, establish a sound corporate governance system, improve the performance of boards of directors, and improve corporate performance. Act of the board of directors is the major source of its performance. The effectiveness of the board of directors receive more attention than its formal specification.This paper studies on the relationship between the behaviors of the board of directors in the state-owned holding companies and the corporate performance. After returning to concerned theoretical basis and research literatures, it illustrates the practical process of reforming the board of directors of state-owned holding companies in China, and analyzes the existing problems in the board of directors of state-owned holding companies. After that, it studies on the performance evaluation of the board of directors in state-owned holding companies. By taking the state-owned listed companies in China as the samples, it studies on the relationship between the behaviors of board of directors in state-owned holding companies and corporate performance, and conducts empirical researches on the efficiency of the behaviors of board of directors in state-owned holding companies. It takes a state-owned holding company---Tsingtao Beer as the case to study on the relationship between behaviors of board of directors and corporate performance. By means of empirical study and case analysis, it mainly comes to the following conclusions:1. Act of board of directors is the major source of the performance for board of directors, and it is important for evaluating the performance of board of directors. The evaluation to the performance of board of directors includes overall standards of performance for the board and individual directors, the external evaluation and self-evaluation.2. By making empirical study and case analysis on the relationship between the behaviors of board of directors in state-owned holding companies and corporate performance, it gets the following conclusions:(1) There is no significant correlation between the number of annual board meetings and corporate performance.(2) There is Positive correlation between effort level of members of the board of directors and corporate performance. The proportion of the board members being absent from meetings is in negative correlation with the corporate performance,(3) There is no significant correlation between the changing of managing director and corporate performance.(4) A particular size of board of directors has a positive impact on corporate performance.(5) There is no significant correlation between the integrating two positions (chairman and managing director) and corporate performance.(6) There is no significant correlation between Shareholding ratio of board of directors and corporate performance.(7) There is significant positive correlation between the shareholding ratio of state-owned shares and corporate performance. The state-owned holding company has easier access to government support.(8)There is no significant correlation between high salaries for the directors and corporate performance.(9) There is no significant correlation between the proportion of directors without salary and corporate performance.(10) There is significant positive correlation between the number of outside director and corporate performance. The outside directors are playing an active role.(11) There is no significant correlation between the consistent working place of independent director and listed company and corporate performance.